Neco Model Questions Vol1 2017 Financial Accounting Question 40

Practice objective / multiple choice question 40 from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2017 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 40 NECO_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • objective

On 1 July the business borrowed \(\text{₦}500,000\) from a bank, receiving the cash immediately. Record the journal entry for this loan transaction.

Answer Options

Correct Answer A. Debit Cash ₦500,000; Credit Bank Loan ₦500,000
B. Debit Cash ₦500,000; Credit Notes Payable ₦500,000
C. Debit Bank Loan ₦500,000; Credit Cash ₦500,000
D. Debit Cash ₦450,000; Credit Bank Loan ₦450,000
Correct Answer
A
Correct Option:
Debit Cash ₦500,000; Credit Bank Loan ₦500,000

About This Question

This is Neco Model Questions Vol1 2017 Financial Accounting Question 40. It is one of the objective questions from the 2017 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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